promissory note

A promissory note is evidence of a debt with a specified amount due and an interest rate. The note may specify a due date or may be payable on demand. The promissory note may or may not be accompanied by other instruments such as a mortgage that provide security for its payment.

A promissory note is a written promise to pay a specified amount, either on demand or at a future date, often with interest.

- Used in treasury and financial management for funding, investment, and risk decisions.
- Used to evaluate cash flows, financing costs, and capital structure.

- Example: Finance teams use **promissory note** when planning funding needs and managing cash and risk.

- Why it matters: Supports liquidity and risk control and improves the quality of financing and investment decisions.